- •$1.75B in stablecoins minted post-crash by Tether and Circle.
- •Indicates rising demand for liquidity and safety.
- •Stablecoin activity spikes amid crypto volatility.
Stablecoin Giants Respond to Crash With Fresh Minting
Following the recent crypto market crash, Tether and Circle—the two largest stablecoin issuers—have minted a combined $1.75 billion in new stablecoins. The sudden surge in issuance suggests a major shift in market behavior as traders and investors seek safe haven assets amid ongoing volatility.
The move highlights the vital role that USDT (Tether) and USDC (Circle) play in the crypto ecosystem, especially during times of crisis. Stablecoins are often used as a refuge during market downturns, allowing investors to exit volatile assets while maintaining on-chain liquidity.
Why Stablecoin Demand Spikes During Crashes
When prices collapse and liquidations spread across exchanges, stablecoins become the default escape route. They preserve capital, maintain purchasing power, and enable quick re‑entry when markets stabilize. The minting of $1.75 billion in new USDT and USDC reflects not just investor caution but also strategic repositioning.
Institutions and high‑volume traders often demand fresh stablecoin liquidity during chaotic periods—either to buy the dip, hedge against further drops, or move assets into DeFi protocols offering yield.
The recent minting may also point to growing exchange inflows, as traders prepare for opportunistic buys after the downturn.
Tether(@Tether_to) and Circle(@circle) minted a total of $1.75B in stablecoins after the market crash.https://t.co/ITZX0iQcRKhttps://t.co/KgLuFF9ljUpic.twitter.com/umqhOhiwyb
— Lookonchain (@lookonchain) October 11, 2025
What This Means for the Crypto Market
The large‑scale stablecoin minting by Tether and Circle may signal market bottoming behavior or renewed institutional interest. Historically, spikes in stablecoin supply have preceded market rebounds, as sidelined capital re‑enters after panic selling subsides.
However, it could also mean investors are pulling funds out of volatile assets, parking them in stablecoins until confidence returns. In either case, the stablecoin sector continues to prove its importance during uncertain times.